Crude intraday

[RobinHood]

hi

just curious, anyone here playing crude or nat gas futures?

I've been observing it a little lately due to my work hours..

What are the other instruments you find essential in following alongside crude? Right now all I really watch along-side the crude book is the ES book. anything else you guys would think important?

 

[wayneL]

hi

just curious, anyone here playing crude or nat gas futures?

I've been observing it a little lately due to my work hours..

What are the other instruments you find essential in following alongside crude? Right now all I really watch along-side the crude book is the ES book. anything else you guys would think important?

Keep an eye on DX or EUR/USD as proxy for reverse correlation.

I find NG is bit thin and the spreads a bit wide to day trade... and it can be a monster. But CL (or QM) is a fantastic vehicle to trade.

 

[RobinHood]

Thanks wayne.

Interesting today, trade balance comes in worse and ES and DAX get heavily offered yet crude and non-US currencies seem to hold up and Yen no longer inversely correlated to them. now we reverse on the ES open, equities bid up and bonds offered.

 

[GumbyLearner]

Dont forget the geo-politics Mr. Robin Hood. Just takes a few nutters to blow up some gas pipelines and bang there goes the price.

Quite volatile when you consider something like this:

http://www.nytimes.com/2008/12/11/world/11nations.html

 

[GumbyLearner]

All of these guys understand....

www.youtube.com/watch?v=WJLzvPesVxc :band

 

[MRC & Co]

Yeh, I think crude is one of the best instruments to read the flow of price action. You can also see strong resistance and support points build up in the book and levels being defended.

But you would need a big account to trade it.

 

[Naked shorts]

I've been observing it a little lately due to my work hours..

What are the other instruments you find essential in following alongside crude? Right now all I really watch along-side the crude book is the ES book. anything else you guys would think important?

Following the goings on the IEA's website might help
http://www.iea.org/

 

[Naked shorts]

All of these guys understand....

www.youtube.com/watch?v=WJLzvPesVxc :band

lol wtf has that got to do with crude? nice clip anyhow

 

[wayneL]

Yeh, I think crude is one of the best instruments to read the flow of price action. You can also see strong resistance and support points build up in the book and levels being defended.

But you would need a big account to trade it.

Yep the big NYMEX contract (CL) is 1000 bbls so $1000USD per $1.00 of movement. That can be a monster for a small account.

A couple of alternatives are:

The emiNY contact (QM) which is half the size of CL.

The US stock code USO which is an ETF that tracks the oil price. Trade as many shares as risk parameters allow.

All are liquid enough to trade intraday.

 

[ThingyMajiggy]

Many of you guys still trade the CL intra-day?

 

[MRC & Co]

Many of you guys still trade the CL intra-day?

Yeh. It's good, but large spreads and very thin.

 

[ThingyMajiggy]

Yeh. It's good, but large spreads and very thin.

As in during our day time? or you trade the first hour or so of the US open?

Been playing with it today, and it seems really good to trade, I've actually done better off that today than I have off the SPI. Everyone is asleep over there, yet its still more active than the spi lol

Looking forward to having a go at it tonight.

 

[Trembling Hand]

As in during our day time? or you trade the first hour or so of the US open?

Been playing with it today, and it seems really good to trade, I've actually done better off that today than I have off the SPI. Everyone is asleep over there, yet its still more active than the spi lol

Looking forward to having a go at it tonight.

Its a different story during cash hours. Lots more volume and really fast moves.

I reckon the sweet spot is around Europe open to before US open (9:00 am New York time)

 

[ThingyMajiggy]

Its a different story during cash hours. Lots more volume and really fast moves.

Sounds perfect

I reckon the sweet spot is around Europe open to before US open (9:00 am New York time)

Yeah I see it starts to pick up around DAX open onwards, then goes nuts when U.S kicks in.

 

[lukeaye]

I've heard alot about crude, and never actually traded it. Im going to give it a go. Just wondering what kind of spreads you guys get from your dealers. Im using IG markets, and looking at the spread now it is 8 points.

That is pretty hard to trade off don't you think? I will have to see what it goes to during EURO US session, maybe 4 - 6? Not sure as i said i havent traded it, but just seems wide. Might have to adapt the style of trading to suit the wider spread then?

 

[Trembling Hand]

I've heard alot about crude, and never actually traded it. Im going to give it a go. Just wondering what kind of spreads you guys get from your dealers. Im using IG markets, and looking at the spread now it is 8 points.

That is pretty hard to trade off don't you think? I will have to see what it goes to during EURO US session, maybe 4 - 6? Not sure as i said i havent traded it, but just seems wide. Might have to adapt the style of trading to suit the wider spread then?

the broker doesn't provide the spread, the Market does. UNLESS you are trading against your "broker", MM CFDs.

Forget about trading that rubbish. You will get nowhere giving up 8 points on entry and 8 points on exit.

 

[ThingyMajiggy]

:iagree:

Sacrificing 8 points on entry and exit, you would have no hope Luke.

 

[lukeaye]

the broker doesn't provide the spread, the Market does. UNLESS you are trading against your "broker", MM CFDs.

Forget about trading that rubbish. You will get nowhere giving up 8 points on entry and 8 points on exit.

Yes i understand that, but i am trading against the broker on CFD. So that is the problem then ey?

What do you guys trade?

:iagree:

Sacrificing 8 points on entry and exit, you would have no hope Luke.

yeah thats what i thought, given that i can get 1 pip on currency, or 2 ticks on an index, makes it hard to justify, and blows my plan out of the water.

 

[MRC & Co]

Don't get too excited Sam, CL today (Asian time) was as volatile as it gets, it's generally dead, lucky to get 1-2 moves in the entire day, but there was a lot of volume today.

Best times IMO, are those 1-2 moves during Asian timezone, about 30 mins before pit open and first 1-2 hours of the pit session. But crap timezone. Worst timezone, last hour of pit session. Irrational moves, similar to what the SPI has been doing lately, which I find impossible to trade.

All depends with how your trying to trade it I guess.

 

[ThingyMajiggy]

Don't get too excited Sam, CL today (Asian time) was as volatile as it gets, it's generally dead, lucky to get 1-2 moves in the entire day, but there was a lot of volume today.

Best times IMO, are those 1-2 moves during Asian timezone, about 30 mins before pit open and first 1-2 hours of the pit session. But crap timezone. Worst timezone, last hour of pit session. Irrational moves, similar to what the SPI has been doing lately, which I find impossible to trade.

All depends with how your trying to trade it I guess.

Cheers for the heads up. Will give it a go and see how things end up, I quite liked it today, DAX open now so watching to see how much it picks up.